What lease bonus $$$ is acceptable for 2009... the following is how I see it.

Lease Bonuses::

2007.........$100 - $300 / acre leases..................way too low

2008.........$20,000 & up / acre leases...............evidently too high

2009.........$2500 - $10,000 / acre leases ........seems about right

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We work for someone. Our job is to get a low price. Most landmen are contract employees. They do a good job or they don,t get more work.
Can you really take Aubreys word on anything when his companies stock is falling through the floor.
Or cHK could run out of money...

I don't think congress would bail out an energy company. Or CHK could be forced to continue to sell off parts of its prospects. Is CHK going to go back up?

Maybe.....maybe not....
All of the articles that I read pertaining to their sell-offs also mention that they will be consentrating on the HS. Sounds like they are trying to keep as much of the good stuff as they can. At least that is the way I see it through my rose colored glasses.
Hey KB,
You look like you have moved from the realm of "Super Chick" to "Super Hippy Surfer Chick" in the short time I have been away from the computer.
They already sold part of their intrest in the HA to Plains. I can't remeber the details, but wasn't about a 25% wi?
You hold out for 30K/acre and you will get absolutely nothing. It's obvious you dont know what your talking about.
They are, they are buying the royalty on the leases they bought at the cheaper prices.
Jim, I have seen title problem that go back a 100 years. Imagine a tract of land that was bought in 1905 by a farmer. Now he has over 80 decendents who do not know each other. They were to poor to do a formal succesion.

Anyone in the oil and gas buissness has seen tracts like this.

I'm sure you have.

I don't think the others not in the buissness know how big of a mess this is. How long it takes to figure it out. I know of landmen who have spent more time in the geneology section of sheve memorial than the courthouse.

We in LA are lucky. Most NW LA courthouses have good records. Can I get a amen from those poor basterd working in AR? In arkansas, the records are so bad, private companies (abstract plants) specialize in providing title info to the landmen.
Jim and Baron are correct. Some of these Sections are going to be nightmares. Title attorneys are shaking their heads at some of the issues we have and are about to face.

The outlay and expense for this research is real. Title is title, unless its not there (in the succession situation and many others). You can do curative on anything, but you need a pretty good band-aid on some of these tracts when bonuses and the production potential are this high. And the traditionally productive areas in NW LA are not impossible, but time intensive (as stated above) w/o a former opinion.
I know of some funds that were in escrow for years because they didn't resolve the title problems ahead of time.
The operator will get their money. Its the royalty owners who have title problems that will wait. imagine trying to work out a 100 years of successions. It can be tough.


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